Non-ERISA 403(b) Plans

[Belgarath]

Does anyone know of a good summary of what specific MANDATORY SECURE/2.0 provisions specifically do apply to a Governmental 501(c)(3) non-ERISA 403(b Plan? A small list, I know, but it would be handy to have.

Thanks.

[Gina Alsdorf]

Lincoln Financial has a good one on their Secure 2.0 website. https://www.lincolnfinancial.com/public/general/secureact 

It is labeled reference guide for DC Plans.  

 

[Peter Gulia]

If you use a service provider’s materials, apply your own sense to a classification of a provision as mandatory or optional.

Some service providers classify a SECURE 2019 or SECURE 2022 tax law change as “mandatory” for the business to provide services most customers likely call for, or that are essential to how the provider’s systems operate.

For example, about the tax law change that permits a plan to provide for a § 401(a)(9) required beginning date an applicable age of 73 or 75, at least one big recordkeeper classified this as mandatory. But a plan may provide, without failing to meet § 401(a)(9), an applicable age of 72, 71, 70½, 70, or even younger (if it doesn’t provide an involuntary distribution before normal retirement age). So, I might classify the change to 73/75 as optional. By contrast, a provision about whether some beneficiaries must complete a distribution within ten years from the participant’s death might, depending on the plan’s other provisions, be needed to tax-qualify.

Also, some of the service providers’ outlines don’t show completely or conspicuously an exception or variation for a governmental plan.

If your work is about a governmental plan, consider that the State’s laws might restrain which provisions must, may, or must not be included or omitted. Those laws might include an enabling statute that grants, and limits, powers to establish and maintain a § 403(b) or other retirement plan. And it might include laws about collective bargaining or discussion with associations of employees and retirees. Those laws might make required or obligated a provision that under Federal tax law is optional.

Further, consider that some provisions might be stated by an annuity contract or a custodial account, rather than in “the” plan document.